So what you're saying is, if I were to run a backed up DVD on a system with Component Video (my current setup does not have this yet) I would still get pretty much the same benefits that I would get running an original DVD on a Component Video setup.

I don't have component video, but I don't know why it would cause you to lose the benefits, because even though the video's compressed the quality is still excellent and the audio isn't compressed at all so there would be no problems with the audio. As far as any more in depth questions about the component video thing, I can't answer because I don't have it, but my point is that even if there was a quality loss with component video I can gaurantee you wouldn't notice it. Because technically when you're compress a dvd you lower the video quality a lot, but it's not enough for your eyes to notice.